Zacks Analyst Blog Highlights: Guess? Inc., Radio One, Inc., Comcast Corp., SunPower Corp. and Aluminum Corporation of China Ltd

Business Wire, Sept 8, 2008

CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Guess? Inc. (NYSE: GES), Radio One, Inc. (Nasdaq: ROIAK), Comcast Corp. (Nasdaq: CMCSA), SunPower Corp. (Nasdaq: SPWR) and Aluminum Corporation of China Ltd. (NYSE: ACH).

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Here are highlights from Friday's Analyst Blog:

Guess? Beats, Outlook Cautious

Guess? Inc. (NYSE: GES) reported strong results for the second quarter of fiscal 2009. It reported sales of $515 million and EPS of $0.57, easily beating consensus estimates. Despite the huge upside in the second quarter, the management's full-year guidance wasn't all that bullish.

Guess now expects sales of $2.06-$2.11 billion and EPS of $2.47-$2.53, which was up from its previous guidance of $2.03-$2.08 billion and EPS of $2.40-$2.48. The management is typically cautious with its guidance. Even so, the company is experiencing its strongest growth in parts of the world where economic growth is slowing. We would not chase the shares here.

Radio One on Same Frequency

Radio One, Inc. (Nasdaq: ROIAK) is diversifying into businesses outside its core radio operations, which in the longer-term could offset the effects of radio's secular decline. Together with Comcast (Nasdaq: CMCSA), the company started the African-American cable TV network, TV One, which is expected to be cash-flow positive in the second half of 2008.

The company is also investing in online content and an Internet portal. With the recent sale of the Los Angeles and Miami stations, we expect ROIAK to acquire another 10% stake in TV One in 2009, and consolidate it, providing meaningful accretion. Near term, we expect revenue and earnings to trough in 2009 but have no visibility to renewed growth.

SunPower a "Hot" Green Play

The fortunes of SunPower Corp. (Nasdaq: SPWR) appear greener given the very high growth potential in the alternative energy industry and specifically solar power energy, with higher captive generation of panels, declining silicon cost and assured silicon supply until 2010.

In addition, a new solar cell-manufacturing facility in Malaysia, expansion into the Italian market and a recent agreement with FPL for the photovoltaic power plants in the USA, adds visibility to the story. Also, cheaper poly-silicon supply contracts and thinner wafers are improving the solar cell and panel production overheads. Thus we maintain our Buy recommendation on SPWR common stock with a six-month target price of $98. Price appreciation to our near-term target price represents 15.6% upside potential.

Chalco Costs Keep It Range-Bound

Aluminum Corporation of China Ltd. or Chalco (NYSE: ACH) expects to benefit from the long-term growth of the Chinese economy as well as through capacity expansion, acquisitions and joint ventures. However, higher raw material and power costs, along with potential overcapacity force us to rate the shares a Hold with a target price of $20.

Chalco expects no serious competition from China's alumina and primary aluminum producers in the immediate future because of the government s entry requirements in the industry, the need for a supply of bauxite, and the need for experience and technology in the field.

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